The Energy Administration of Sichuan Province has issued a letter inviting comments on the "Implementation Plan for Guaranteeing Renewable Energy Power Consumption in Sichuan Province (Provisional) (Draft for Comments)." Please submit your written feedback by December 2; failure to do so within the deadline will be deemed as no objection.

The Energy Bureau of Sichuan Province has issued a letter inviting comments on the "Implementation Plan for Guaranteeing Renewable Energy Power Consumption in Sichuan Province (Provisional) (Draft for Comments)." Please submit your written feedback by December 2; failure to do so within the deadline will be considered as no objection.

The plan states that the market entities responsible for absorbing and accommodating renewable energy will fulfill their absorption responsibility weights as follows:

1. Provincial grid enterprises and provincially-owned (internal) local grid enterprises bear the responsibility for accommodating renewable energy based on their annual electricity sales volume. Specifically, the minimum total accommodation responsibility weight for 2020 was 80%, while the minimum non-hydro responsibility weight was 6%.

2. Other market participants, including various enterprises directly supplying (selling) electricity to power users, independent power sales companies, power sales companies with distribution network operation rights, and electricity users purchasing power through the electricity market (excluding those purchasing power via power sales companies as agents), shall assume renewable energy consumption responsibility weights corresponding to their annual supply (sales or usage) volumes, based on the consumption obligation weights allocated by the state to the province.

3. Enterprises that own their own power plants are required to assume consumption responsibility weights corresponding to their annual electricity usage. Specifically, for 2020, the minimum total consumption responsibility weight was 80%, while the minimum non-hydro consumption responsibility weight was 6%.

Details are as follows:

Letter from the Sichuan Provincial Energy Administration Soliciting Comments on the "Implementation Plan for Guaranteeing Renewable Energy Power Consumption in Sichuan Province (Provisional) (Draft for Comments)"

To all relevant units:

According to the "Notice from the National Development and Reform Commission and the National Energy Administration on Establishing and Improving the Mechanism for Guaranteeing Renewable Energy Power Consumption" (NDRC Energy [2019] No. 807), the "Notice from the General Office of the National Development and Reform Commission and the Comprehensive Department of the National Energy Administration on Issuing the Outline for Preparing Provincial-Level Implementation Plans for Renewable Energy Power Consumption Guarantees" (NDRC Energy Office [2020] No. 181), and the "Notice from the National Development and Reform Commission and the National Energy Administration on Issuing the Renewable Energy Power Consumption Responsibility Weight Targets for Each Provincial Administrative Region in 2020" (NDRC Energy [2020] No. 767), in order to effectively implement the renewable energy power consumption responsibility weight targets in our province, the Provincial Energy Administration, together with relevant departments and units, has drafted the "Sichuan Province Renewable Energy Power Consumption Guarantee Implementation Plan (Provisional) (Draft for Comments)." We now seek your organization's feedback. Please submit your comments and suggestions in writing to our bureau by December 2; failure to respond by the deadline will be deemed as no objection.

Contact and phone number: Gao Liang, 028-86705615

Electricity Email: 429764491 qq.com

Attachment: Sichuan Province Renewable Energy Power Consumption Guarantee Implementation Plan (Provisional) (Draft for Comments)

Sichuan Provincial Energy Administration

November 23, 2020

Sichuan Province Renewable Energy Power Consumption Guarantee Implementation Plan

(Provisional) (Draft for Public Comment)

According to the "Notice from the National Development and Reform Commission and the National Energy Administration on Establishing and Improving the Guarantee Mechanism for Renewable Energy Power Consumption" (NDRC Energy [2019] No. 807) and the "Notice from the Comprehensive Department of the National Development and Reform Commission and the National Energy Administration on Issuing the 2020 Renewable Energy Power Consumption Responsibility Weights for Each Provincial Administrative Region" (NDRC Energy [2020] No. 767), among other documents, this implementation plan has been formulated to effectively carry out the renewable energy power consumption responsibility weights in our province, tailored to our specific circumstances.

I. Guiding Principles and Overall Requirements

Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we will comprehensively implement the spirit of the 19th National Congress of the Communist Party of China and the Second, Third, and Fourth Plenary Sessions of the 19th Central Committee. We will deeply advance the important instructions from General Secretary Xi Jinping regarding Sichuan’s work, as well as the new energy security strategy of "Four Revolutions, One Cooperation," to help Sichuan leverage its role as a national high-quality clean energy base and a pilot province for clean energy. This will promote the prioritized consumption of renewable energy power, ensure the fulfillment of the annual minimum renewable energy consumption targets and non-hydro renewable energy consumption targets assigned to Sichuan Province by the state, and ultimately achieve the sustained and healthy development of renewable energy.

II. Mechanism for Implementing Consumption Guarantee

(1) The Provincial Energy Administration, in accordance with the nationally defined renewable energy consumption responsibility weights, will specify the minimum renewable energy power consumption responsibility weights (referred to as "Minimum Consumption Responsibility Weights") for all market entities within the province that are accountable for meeting these targets. These weights include the overall renewable energy power consumption responsibility weight (referred to as "Total Consumption Responsibility Weight") and the non-hydro renewable energy power consumption responsibility weight (referred to as "Non-Hydro Consumption Responsibility Weight"). Together with relevant provincial departments, the Administration will assess the performance of market entities against these responsibility weights, provide guidance and follow-up to those entities that fail to meet their targets, and take appropriate actions in accordance with laws and regulations.

(2) Market entities responsible for fulfilling consumption obligations shall register their accounts at the Sichuan Electricity Trading Center in accordance with this Implementation Plan, actively and proactively meeting their respective consumption obligation targets. Market entities that meet the necessary conditions are encouraged to voluntarily exceed the mandated minimum consumption obligation targets; however, the energy consumption volume corresponding to any excess fulfillment will not be factored into the energy consumption assessment.

(3) Provincial-level grid enterprises affiliated with the State Grid within the province (referred to as "Provincial Grid Enterprises") and provincially-owned local grid enterprises shall, based on this Consumption Implementation Plan, formulate the "Implementation Rules for Consumption Responsibility Weights" for grid enterprises (hereinafter referred to as "Implementation Rules"), and are responsible for organizing the markets within their respective operational areas that bear the consumption responsibility.

The entities have fulfilled their respective renewable energy consumption obligation targets.

(Four) The Provincial Energy Administration has authorized the Sichuan Electricity Trading Center to manage information related to market entities within the province that are responsible for consumption and integration obligations. In accordance with this authorization, the Sichuan Electricity Trading Center is tasked with handling account closure management, calculating and transferring consumption volumes for these entities in Sichuan Province, and submitting reports to the Provincial Energy Administration, the Provincial Department of Economy and Information Technology, and the Sichuan Regulatory Office of the National Energy Administration. These reports will include updates on the fulfillment of market entities' consumption responsibility weights, along with relevant analysis and assessments.

III. Consumption Responsibility Weighting and Allocation (Can Be Simplified)

(1) Each year, the Provincial Energy Administration, based on the national allocation of annual consumption obligation weights for the province, clearly defines the annual consumption obligation weights for each market participant. In 2020, the province’s minimum total consumption obligation weight was set at 80%, while the minimum non-hydro consumption obligation weight was 6%.

(II) Among the sales and consumption volumes of electricity by market entities bearing the consumption obligation, agricultural electricity usage and heating electricity measured specifically for dedicated purposes are exempt from the consumption obligation weight assessment. Meanwhile, all market entities responsible for fulfilling the consumption obligations shall collectively bear the consumption volume corresponding to network losses and plant-use electricity within Sichuan Province.

(III) The implementation plan for the consumption responsibility weights assigned to market entities bearing consumption obligations is as follows:

1. Provincial grid enterprises and provincially-owned (internal) local grid enterprises bear the responsibility for accommodating renewable energy based on their annual electricity sales volume. Specifically, the minimum total accommodation responsibility weight for 2020 was 80%, while the minimum non-hydro responsibility weight was 6%.

2. Other market participants, including various enterprises directly supplying (selling) electricity to power users, independent power sales companies, power sales companies with distribution network operation rights, and electricity users purchasing power through the electricity market (excluding those purchasing power via power sales companies as agents), shall assume renewable energy consumption responsibility weights corresponding to their annual supply (sales or usage) volumes, based on the consumption obligation weights allocated by the state to the province.

3. Enterprises that own their own power plants are required to assume consumption responsibility weights corresponding to their annual electricity usage. Specifically, for 2020, the minimum total consumption responsibility weight was 80%, while the minimum non-hydro consumption responsibility weight was 6%.

IV. Market Entity Management Mechanism

(1) All market entities responsible for consumption and accommodation obligations must complete account registration or withdrawal at the Sichuan Electricity Trading Center before the official start of the annual assessment year. The Sichuan Electricity Trading Center will then submit to the Provincial Energy Bureau the list of market entities in Sichuan Province that are accountable for consumption and accommodation responsibilities this year.

(2) Market entities responsible for renewable energy consumption shall formulate an "Renewable Energy Power Consumption Plan" on an annual basis, outlining their requirements and preliminary arrangements for fulfilling the consumption targets. These plans must then be submitted to the grid enterprise operating in their respective regions, the Provincial Energy Bureau, the Provincial Department of Economy and Information Technology, the Sichuan Regulatory Office of the National Energy Administration, and the electricity trading institution. Meanwhile, enterprises with self-owned power plants that are not connected to the public grid shall also prepare an annual "Renewable Energy Power Consumption Plan" and submit it to the Provincial Energy Bureau, the Provincial Department of Economy and Information Technology, the Sichuan Electricity Trading Center, and the Sichuan Regulatory Office of the National Energy Administration. The Sichuan Electricity Trading Center will consolidate all market entities' consumption plans.

(3) Handling the reporting, statistics, and analysis of renewable energy consumption. The Sichuan Electricity Trading Center compiles monthly reports on how each market participant has fulfilled their renewable energy consumption responsibility targets, and submits quarterly updates—including detailed analyses and assessments—to the Provincial Energy Bureau, the Provincial Department of Economy and Information Technology, and the Sichuan Regulatory Office of the National Energy Administration.

5. Fulfillment of Consumption Obligation Weighting

(1) Main fulfillment methods: Purchasing or self-consumption of renewable energy electricity. Market entities responsible for absorbing renewable energy shall fulfill their absorption responsibility weights based on the actual amount of renewable energy electricity they have absorbed (referred to as "absorption volume").

(II) Supplementary methods of performance.

1. Purchase the renewable energy consumption credits oversubscribed by other market entities, with both parties independently determining the transaction or transfer price.

2. Purchase green electricity certificates for renewable energy; the corresponding amount of renewable energy represented by the green certificates will be counted as consumption volume.

(III) Calculation of Absorption Capacity

1. Renewable energy electricity purchased from the market.

(1) Provincial grid enterprises and provincially-owned (internal) local grid enterprises shall fully guarantee the purchase of renewable energy electricity, which will then be allocated among market entities within their operational areas according to their respective responsibility weights. The allocated电量 will be counted toward each market entity's consumption and integration obligations.

(2) Renewable energy electricity traded in the provincial power market shall be counted toward the consumption volume of market participants based on the settled transaction volume.

2. Self-generated and self-consumed renewable energy electricity.

The self-generated and self-consumed electricity measured by grid enterprises, or approved by the Provincial Energy Bureau, the Provincial Department of Economy and Information Technology, or the Sichuan Regulatory Office of the National Energy Administration, shall all be counted toward the consumption capacity of market entities engaged in self-generation and self-use.

3. Supplement (or substitute) methods to fulfill the consumption volume.

The amount of renewable energy consumed purchased from other non-grid-enterprise market participants—or the equivalent amount derived from green certificates—will be counted toward the purchasing entity's consumption target. Meanwhile, any renewable energy consumption sold or already transferred by market entities obligated to meet consumption targets, as well as the consumption corresponding to green certificates they have sold, will no longer be included in that entity's own consumption tally. In line with the principle of balancing rights and responsibilities, renewable energy consumption associated with agricultural electricity use or dedicated-metered heating power—which are exempt from the consumption responsibility weighting assessment—cannot be used for trading or transfer under any circumstances.

(4) Allocation of renewable energy electricity consumption corresponding to the full-guaranteed purchase obligation. First, this allocation will be used to fulfill the consumption responsibility weights associated with residential, agricultural, essential public utility, and public-benefit service sectors within the operating area, as well as non-marketized electricity consumption. If there is any surplus remaining, provincial grid companies and provincially-owned (internal) local grid enterprises will distribute the remaining capacity based on the electricity purchases or consumption volumes of all market participants within their respective operating areas (excluding enterprises with self-owned power plants that are not connected to the public grid, as well as independently operated grid companies). Initially, this distribution will follow a non-compensated principle, with adjustments made at an appropriate time as the electricity market reform progresses.

6. Task Allocation

(1) The Provincial Energy Administration is responsible for allocating and implementing the province’s consumption obligation targets, clearly defining the responsibility weights for each market entity tasked with fulfilling these obligations, and conducting performance assessments. In coordination with the Provincial Department of Economy and Information Technology, it will oversee and urge provincial (domestic) local grid enterprises, power distribution and retail companies, as well as enterprises with self-owned power plants that are not connected to the public grid, to complete account registration at the Sichuan Electricity Trading Center on time and submit relevant data, including progress reports on their consumption obligation targets.

(2) Provincial grid enterprises and provincially-owned (internal) local grid enterprises shall, based on this Consumption Implementation Plan, organize market entities within their respective operating areas that are responsible for consumption obligations to fulfill the renewable energy power consumption responsibility weights. Provincial grid enterprises and provincially-owned (internal) local grid enterprises shall prepare "Detailed Rules for Implementing Consumption Responsibility Weights," submit them to the Provincial Energy Administration for approval, and then implement them accordingly.

(III) Provincial grid enterprises and provincially-owned (internal) local grid enterprises shall submit to the Provincial Energy Bureau, the Provincial Department of Economy and Information Technology, and the Sichuan Regulatory Office of the National Energy Administration, by the end of January each year, a report detailing the completion of their organizational work on consumption responsibility weights within their respective operating areas for the previous year.

(4) In cases where renewable energy generation significantly decreases or transmission is restricted due to natural causes, major accidents, or other force majeure events, the National Energy Administration will correspondingly reduce the consumption responsibility weights. Provincial Energy Administrations will then assess market entities based on the national, reduced consumption responsibility weights.

(5) The Sichuan Electricity Trading Center is responsible for organizing and conducting renewable energy-related electricity transactions within the province, guiding market participants involved in electricity trading to prioritize fulfilling their respective renewable energy consumption obligations. Additionally, the center will provide reminders to market entities bearing these obligations during key stages such as reviewing medium- and long-term electricity trading contracts and announcing electricity trading information.

(6) The Sichuan Electricity Trading Center is responsible for organizing the trading or transfer of consumption capacity within the province, and for formulating detailed rules governing such transactions or transfers.

(7) The Sichuan Electricity Trading Center shall submit, on a quarterly basis, the progress of fulfilling consumption responsibility weights by all market entities to the Provincial Energy Bureau, the Provincial Department of Economy and Information Technology, and the Sichuan Regulatory Office of the National Energy Administration. Additionally, by the end of each January, it must report the completion status of consumption responsibility weights for the previous year.

(8) Market entities responsible for renewable energy consumption obligations shall fulfill the renewable energy power consumption targets allocated by the Provincial Energy Administration and commit to meeting these targets at the Sichuan Electricity Trading Center. Local grid enterprises, distribution and retail companies, and enterprises with self-owned power plants that are not connected to the public grid must submit their monthly progress reports on fulfilling the consumption targets to the Sichuan Electricity Trading Center within the first 3 business days of each month, while also committing to the authenticity and accuracy of the reported data.

(9) The Sichuan Regulatory Office of the National Energy Administration is responsible for overseeing the fulfillment of consumption obligation targets by market entities in the province, as well as monitoring relevant renewable energy trading processes.

7. Assurance Measures

(1) The Provincial Energy Administration, together with the Provincial Department of Economy and Information Technology, will assess and publicly announce the annual consumption obligation fulfillment rates of all market entities responsible for meeting these obligations.

(II) The Provincial Energy Administration, in collaboration with the Provincial Department of Economy and Information Technology and the Sichuan Regulatory Office of the National Energy Administration, will oversee and urge market entities that have failed to meet their consumption obligation targets to rectify the situation within a specified deadline, imposing penalties in accordance with laws and regulations. Additionally, for enterprises equipped with captive power plants that refuse to fulfill their consumption obligation responsibilities, measures for disciplinary action will be studied and formulated.

(3) Grid enterprises, distribution and retail power companies, and enterprises with self-owned power plants that are not connected to the public grid shall be responsible for the accuracy of the data they provide to the Sichuan Electricity Trading Center. If any false information is discovered and verified, the Provincial Energy Bureau, in collaboration with the Provincial Department of Economy and Information Technology and the Sichuan Regulatory Office of the National Energy Administration, will impose penalties in accordance with relevant regulations.

(4) Other safeguard measures will be formulated by the Provincial Energy Bureau based on actual conditions.

(5) This plan will be implemented on a provisional basis for two years from the date of its issuance.